The Asheville citizen. [volume] (Asheville, N.C.) 1885-1889, 1887-12-07

nues have continued to accumulate
the excess for the present year
amounting on tho first day of De-
cember to sos ,25S 701, and estimated
10 reach the sum Of S113, ,OOO,O 900 on
the Both of June next, at which date
it is expected that this sum added
to prior accumulations will swell
the surplus in the treasury to $14O,'
100000. There seems to be no as
slrance that with such withdrawal
from the use of the peoples circu-
lating medium our business com
mu 1ity may not in the near future
be Subjected to the same distress
uhlcr was quite lately produced
ttoin tie same cause ana Hh!;A the
iiu!.e ions Of our uatioa2l treasurs
/ -hnui lie lew and sjW pi, ..ud w',i'e
,it- hs-j c.n,ii.,Gn v,ul'i bt rea2i td
h=iiavc ~ It's entire disCn1nnrti 2r
| S,th private nusincss Interests, 1T
when hy q necversion of Its purN
poses it idly holds money usslessly
isubtrac,cd from tile> channels OF
trade there seems to be reason for
the claim that some legitimate
means should be devised by the
government to restore IN an
emergency, without waste or
extravaganza, such money to
its place among the people.
If such an emergency arises there
now exists no clear and
undoubted executive power ofrellef.
Heretofore the redemption of three
per cent bonds which were payable
at the option of the government has
afforded means of the disbuTSe-
ment of the excess OF our revenues,
but these bonds have all been retired
and there are no bonds outstanding,
the payment of which we have the
right to insist upon. The contribu-
ton to the sinking fund which fur
nished the occasion for the expendi-
ture III the purchase of bonds has
been already made for the current
year so thai there Is no outlet in
that direction.
In the present state of legislation
the only pretenco OF any existing
power to restore at this time any
part Of our surplus revenues to the
people by its expenditure consists
in the supposition that the Secretary
of the Treasury may enter the mar
ket and purchase the bonds of the
government not yet due at arate of
premium to be agreed upon. The
only provision Of law from which
such power could be derived is
found in an appropriation bill
passed a number of years ago, and
it is subject to the suspicion that it
was Intended as temporary and linn
tied i'll its application instead of
conterring a continuing discretion
and authority. No condition ought
to exist which would justify the
grant of power to a single official
upon his judgment OF it's necessity
TO Withhold from or release to the
business of the people in an unusual
manner money held in the Treasury
and thus affect at his will the fnan-
cial situation. of the country; and if
it is deemed vise to lodge in the
Secretary of the Treasury the au-
thcrity in the present juncture to
purchase bonds it should be plainly
vested and provided as far as posi-
BILE with such checks and limitA-
tons az will define this officials
right and dis Tetion and at the
same time relieyc him from undue
responsibility.
In consideration Of the question
of purchasing bonds as means of
storing to circulation the surplus
money accumulating in the Treas
ure it should lie borne in mind that
premiums mus be paid for such
purchase; that thsrS may be largo
part Of these bonds as investments
which cannot be purchased at any
price, andithat combinations among
holders who are willing to sell may
unreasopably enhance the cost Of
such bonds to the government. 1t
has been suggested that the present
bonded debt night be refunded at
q less rate of interest and the differ
ence between the old and the new
securities and cash thus finding use
for the surplus in the Treasury.
The success of this plan it is appar-
ent must depend upon the volition
OF the holders Of the present bonds,
and is is not entirely certain that
the inducement which must be Of
fered would result in more fnan-
cial benefit to the government than
the purchase of bonds, while the
latter proposition would reduce tbs
principal of the debt by actual pay
ment, instead of extending the
proposition to deposit the money
held by the government in bonds
throughout the country for use by
the people, as it seems to me exceed
ingIv Objectionable in principle as
establishing too close a relationship
between the operations Of the gov
erument gTreasury, and the busi-
ness of the country, and too exten-
sive collection ftheir money, thus
fostering an unnatural reliance in
private busin tss on public funds.
If this scheme should be adopted
it should only be done as tempo
rary expedient to meet an urgent
necessity. Legislative and execu-
tive effort should generally be in
the opposite direction and should
have a tendency to divert as much
and az fast as can safely be done
the Treasury Department from
private enterprises. OF course it is
not expected that unnecessary and
extravasant appropriations will be
made for the purpose of avoiding